New Apple retail chief makes “mistake” in firing staff, hires them back

Changes are being reversed just ahead of an expected new hardware release.

Apple is reversing changes to the formula used to calculate staffing levels at its retail stores, according to a Dow Jones news report. An experiment using new formulas had apparently led to wide-ranging layoffs and cuts in assigned hours. However, Apple's new retail chief John Browett said the company "messed up" implementing the changes in the first place, and is hiring new staff to keep its stores prepared for a potential flood of customers next month.

Earlier this week it came to light that Apple Stores had been cutting staff hours, especially for part-time staff, and laying off many recent new hires. The changes came after Browett, the new SVP of retail, implemented a popular 25 percent pay raise for Apple Store employees when he took over for former SVP of retail Ron Johnson. Speculation suggested the changes were made to offset the increased costs of the higher pay.

The news comes shortly after a source close to Ars revealed that there was a company-wide wave of firings last week. The incident was related to employees taking advantage of stocks of replacement refurbished iPhone 4 models, which Apple had quietly begun replacing with iPhone 4S units. It seems Genius Bar staff were encouraging other employees, including managers, to claim their own personal iPhone 4 was malfunctioning, which a Genius would swap for a "free" upgrade to an iPhone 4S. Staff involved in such "trade-ups" were summarily shown the door.

It does not, however, appear that the dismissal of employees involved in phony upgrades and the general staff cuts were related. Still, it seems the latter "iPhone swap" firings may have exacerbated the ill effects of overall plans to cut staff.

But Apple is going back to its previous staffing levels, according to spokesperson Kristin Huguet. "Making these changes was a mistake and the changes are being reversed," Huguet told Dow Jones. "Our employees are our most important asset and the ones who provide the world-class service our customers deserve."

The mistake can't be a good one for Browett, who previously served as CEO of Dixons Retail before joining Apple earlier this year. During his time as CEO, Dixons Retail stock dropped over 50 percent. Dixons-owned electronics chains Currys and PC World (a British computer retail chain, not to be confused with the American publication) also suffered from poor customer service and product selection, with many customers describing the chains as the "absolute antithesis" of Apple's retail experience.

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Ugh, as a former Apple Store specialist, I can't even imagine word coming down that they were going to cut the number of people working. Our biggest complaints were always along the line of "waited 20 minutes for someone to help me, and decided to leave". I very rarely would have any time when I wasn't with a customer. There was always someone else waiting for help. And this bozo figured that reducing staff would help somehow? I would have gladly given up the 25% pay raise if it meant at least keeping the same number of employees on the floor.

I wonder if Apple could work out a deal to get Ron Johnson back. It's not like he's setting the world on fire over at JC Penney.

As an ex-employee of aforementioned UK Retail chain (commonly known as the "Evil Purple Place")...

Lay-offs were commonplace, and I can assure you, he was hated, passionately, by many many people I worked with. People who *wanted* to help customers were told not to, and disciplined when they did. I've both seen it with my own eyes, and been on the sharp end of a bollocking for it.

People who, despite the places reputation, knew what they were doing technically were pretty much driven out the door. I have no Sympathy for the Company which has, by it's own actions, gutted any technical knowledge it had within it, stamped on any good-feeling toward the company from the public that frequently get ripped off.

So, given that the man was well known for it, what particular brand of Really Good Shit was Apple smoking when it decided he was a Shining Example of good customer service? I'm not an Apple fan, but Really? They thought this was going to raise profits or customer satisfaction/loyalty?

78 Reader Comments

I'm an Apple user. I hate Apple stores with a passion. Crowded, understaffed and with long wait times for even the most banal of tasks, I never go into Apple stores if I can help it. Unfortunately, with the repairs my MBP has needed over the past few months, it's been an inescapable issue, though the staff are polite and friendly enough to offset my annoyance, it is still an environment which I avoid if at all possible, preferring to use the Apple store online to do my shopping.

With that said, while getting a retail system to run leaner is an admirable pursuit, I think it runs contrary to the Apple ethos as envisioned by Steve Jobs. As stores run leaner, customer satisfaction inevitably hits the floor as the impact of fewer staff and disruptive scheduling filters its way down. While I don't like the Apple stores, they are more or less the public face of the organization, and it seems unwise in the current climate to try and retool the existing setup in order to squeeze more profits. To me it suggests that they don't have enough faith in their upcoming products.

Sad but true that retail employees at places like the Apple store are used and abused. On the other hand it can be argued that the people wanting Apple products are going to buy them regardless so what difference does it make. Still, seems from an outsiders perspective that Apple is making some curious moves with management hires.

During his time as CEO, Dixons Retail stock dropped over 50 percent. Dixons-owned electronics chains Currys and PC World (a British computer retail chain, not to be confused with the American publication) also suffered from poor customer service and product selection, with many customers describing the chains as the "absolute antithesis" of Apple's retail experience.

the apple stores in silicon valley are always very busy, can't see how they cut staff in those.

Agree with Nwambe, the new remodeled apple stores suck. They basically created a cold, hard interior with all the grey metal. With not an ounce of fiber based material anywhere to absorb sound the stores are very loud.

the Microsoft store is decidedly more organic and people friendly too. It is much quieter, but, I suspect that has something to do with the fact that there are hardly any people in it.

Sad but true that retail employees at places like the Apple store are used and abused. On the other hand it can be argued that the people wanting Apple products are going to buy them regardless so what difference does it make. Still, seems from an outsiders perspective that Apple is making some curious moves with management hires.

Seriously, what average mall employee makes their entire living in retail? These are entry level jobs, even genius bar guys.

During his time as CEO, Dixons Retail stock dropped over 50 percent. Dixons-owned electronics chains Currys and PC World (a British computer retail chain, not to be confused with the American publication) also suffered from poor customer service and product selection, with many customers describing the chains as the "absolute antithesis" of Apple's retail experience.

Wait, why did they hire this guy again?

++

Seriously, I never understand half the reasons behind so many of these CEO's, etc. shuffling around big business. Failure must have another definition in that league.

During his time as CEO, Dixons Retail stock dropped over 50 percent. Dixons-owned electronics chains Currys and PC World (a British computer retail chain, not to be confused with the American publication) also suffered from poor customer service and product selection, with many customers describing the chains as the "absolute antithesis" of Apple's retail experience.

Wait, why did they hire this guy again?

He did come with a complete 5 year extended insurance plan for only £20 a month for complete peace of mind with their new purchase ...

During his time as CEO, Dixons Retail stock dropped over 50 percent. Dixons-owned electronics chains Currys and PC World (a British computer retail chain, not to be confused with the American publication) also suffered from poor customer service and product selection, with many customers describing the chains as the "absolute antithesis" of Apple's retail experience.

Wait, why did they hire this guy again?

++

Seriously, I never understand half the reasons behind so many of these CEO's, etc. shuffling around big business. Failure must have another definition in that league.

Steve would probably have fired the guy on the spot for making such a crucial mistake and tell him that "this is shit!". There is no better way to create malice than to fire someone, then said it was a mistake and try to hire them back.

Ever since Steve is gone, Apple really has falling into an "average run-of-the-mill company". People admired them because Apple under Steve has this feeling of brutality, to make sure everything works, at all cost. Now Apple is just satisfied with putting out average software and average hardware. Everything is just next interation (retina mac, new osx) or some incomplete beta stuff (Siri).

In the short term, Apple is not going to crash, but they are definitely spending all the wealth of good will, customer base, even code base instead of increasing them. One day, these will all be spent if they continue like this.

Ever since Steve is gone, Apple really has falling into an "average run-of-the-mill company". People admired them because Apple under Steve has this feeling of brutality, to make sure everything works, at all cost. Now Apple is just satisfied with putting out average software and average hardware. Everything is just next interation (retina mac, new osx) or some incomplete beta stuff (Siri).

In the short term, Apple is not going to crash, but they are definitely spending all the wealth of good will, customer base, even code base instead of increasing them. One day, these will all be spent if they continue like this.

I agree somewhat. I'm willing to cut Apple some slack. With Steve being gone, it's really a different company now. There will be changes. There will be missteps. (Although I've never really seen how anyone at Apple ever thought Browett was a good fit for the company.)

I really hope that this is just a transitional period for the company and that, eventually, they'll be able to retain the polish that they have earned.

What is Apple without customer service? That is why people buy Apple gear and essentially pay in advance for that service. Could you imagine having to contact google on a land line about an Android problem?

Steve would probably have fired the guy on the spot for making such a crucial mistake and tell him that "this is shit!". There is no better way to create malice than to fire someone, then said it was a mistake and try to hire them back.

Ever since Steve is gone, Apple really has falling into an "average run-of-the-mill company". People admired them because Apple under Steve has this feeling of brutality, to make sure everything works, at all cost. Now Apple is just satisfied with putting out average software and average hardware. Everything is just next interation (retina mac, new osx) or some incomplete beta stuff (Siri).

In the short term, Apple is not going to crash, but they are definitely spending all the wealth of good will, customer base, even code base instead of increasing them. One day, these will all be spent if they continue like this.

What is Apple without customer service? That is why people buy Apple gear and essentially pay in advance for that service. Could you imagine having to contact google on a land line about an Android problem?

You can't. No one can call Google support without a business class account...I've tried.

Ugh, as a former Apple Store specialist, I can't even imagine word coming down that they were going to cut the number of people working. Our biggest complaints were always along the line of "waited 20 minutes for someone to help me, and decided to leave". I very rarely would have any time when I wasn't with a customer. There was always someone else waiting for help. And this bozo figured that reducing staff would help somehow? I would have gladly given up the 25% pay raise if it meant at least keeping the same number of employees on the floor.

I wonder if Apple could work out a deal to get Ron Johnson back. It's not like he's setting the world on fire over at JC Penney.

As an ex-employee of aforementioned UK Retail chain (commonly known as the "Evil Purple Place")...

Lay-offs were commonplace, and I can assure you, he was hated, passionately, by many many people I worked with. People who *wanted* to help customers were told not to, and disciplined when they did. I've both seen it with my own eyes, and been on the sharp end of a bollocking for it.

People who, despite the places reputation, knew what they were doing technically were pretty much driven out the door. I have no Sympathy for the Company which has, by it's own actions, gutted any technical knowledge it had within it, stamped on any good-feeling toward the company from the public that frequently get ripped off.

So, given that the man was well known for it, what particular brand of Really Good Shit was Apple smoking when it decided he was a Shining Example of good customer service? I'm not an Apple fan, but Really? They thought this was going to raise profits or customer satisfaction/loyalty?

So, the real issue here is that Apple doesn't have a consistency to the quality of their store employees and what's expected of them, by which customers can create an expected level of service when they walk in store each time.

Sad but true that retail employees at places like the Apple store are used and abused. On the other hand it can be argued that the people wanting Apple products are going to buy them regardless so what difference does it make. Still, seems from an outsiders perspective that Apple is making some curious moves with management hires.

Seriously, what average mall employee makes their entire living in retail? These are entry level jobs, even genius bar guys.

True, I guess it was more along the lines though of damned if you do, damned if you don't. You can't pay these people a lot of money, it just doesn't work like that. Then again when you don't what kind of help should you expect? There are people there that can make pretty decent money if they work the system (spiffs, etc,) but yeah on average it's a very spare job. Throw in the nature of an Apple store though and ugh, no thanks. I'd rather make cinnabuns than work there.

Ever since Steve is gone, Apple really has falling into an "average run-of-the-mill company". People admired them because Apple under Steve has this feeling of brutality, to make sure everything works, at all cost. Now Apple is just satisfied with putting out average software and average hardware. Everything is just next interation (retina mac, new osx) or some incomplete beta stuff (Siri).

In the short term, Apple is not going to crash, but they are definitely spending all the wealth of good will, customer base, even code base instead of increasing them. One day, these will all be spent if they continue like this.

It hasn’t even been a year since Jobs retired, let alone passed away. You honestly think Siri was fast tracked after Steve retired? iTools, .mac, PowerMac Cube, the hockey puck mouse, the dalmatian & flower power iMac? Apple under Steve was entirely capable of fucking up just as badly as without him. It’s confirmation bias. This was a stupid move by a bad hire, I doubt he’ll last much longer.

During his time as CEO, Dixons Retail stock dropped over 50 percent. Dixons-owned electronics chains Currys and PC World (a British computer retail chain, not to be confused with the American publication) also suffered from poor customer service and product selection, with many customers describing the chains as the "absolute antithesis" of Apple's retail experience.

Wait, why did they hire this guy again?

He must be some bozo's nephew. This is the guy who should be shown the door. Really short-sighted on Apple's part to have hired this guy with such a terrible retail reputation. Do the hiring people use the Internet?

So, the real issue here is that Apple doesn't have a consistency to the quality of their store employees and what's expected of them, by which customers can create an expected level of service when they walk in store each time.

I suspect those observations are based on bad customers, not bad Apple Store employees. The vast majority of which I have thought were very good, and more helpful than I want them to be. (Leave me alone, I know what I want! Wait, what's that?)

My ex used to work in retail, and she used to tell horrendous stories about the people who would come in and be completely unreasonable, ugly and down right sociopathic. And of course, it's always the retail employee's fault.

Ever since Steve is gone, Apple really has falling into an "average run-of-the-mill company". People admired them because Apple under Steve has this feeling of brutality, to make sure everything works, at all cost. Now Apple is just satisfied with putting out average software and average hardware. Everything is just next interation (retina mac, new osx) or some incomplete beta stuff (Siri).

In the short term, Apple is not going to crash, but they are definitely spending all the wealth of good will, customer base, even code base instead of increasing them. One day, these will all be spent if they continue like this.

It hasn’t even been a year since Jobs retired, let alone passed away. You honestly think Siri was fast tracked after Steve retired? iTools, .mac, PowerMac Cube, the hockey puck mouse, the dalmatian & flower power iMac? Apple under Steve was entirely capable of fucking up just as badly as without him. It’s confirmation bias. This was a stupid move by a bad hire, I doubt he’ll last much longer.

This. It hasn't been near long enough to really change from Steve. I think people are looking a little too hard in an attempt to find something wrong with Apple. I do agree that he was a terrible pick. Didn't Tim say something like "It wasn't even close" in comparing this guy and the others that were trying to get the job?

* Almost all other computer/technology companies; slow online support, bad phone support, bad store support, have to send in a product for repair and wait several weeks or fix it yourself.

* Apple; good phone support, - Apple stores where questions can be answered quickly, minor repairs can be done within hours and major repairs can be done in a few days.

It really all depends. With my Dell XPS I got a 3 year warranty that covered any sort of damage, even if it was my fault. Not only that, but they would send a technician to my house the next day to fix it.

On the other hand, my dad and brother both have Macs, and they've had less than stellar support when they encountered problems. Just this winter, my brother's Macbook started making an awful noise whenever it was tilted. It also started running really slowly. I (correctly) identified it as a hard drive problem.

Upon arriving at the Apple store, we had to wait for 30 minutes, even though my brother had scheduled an appointment. The "Genius" ran some mysterious diagnostics, but nothing showed up. He ended up telling my brother, and I quote, "You shouldn't move the computer while its on." Seriously?! ITS A F*&%ING LAPTOP!!

Anyways, I ended up replacing the hard drive myself, and it worked as good as new.

* Almost all other computer/technology companies; slow online support, bad phone support, bad store support, have to send in a product for repair and wait several weeks or fix it yourself.

That's funny, because when I've bought PCs in the premium category like ThinkPads (as opposed to cheap retail machines at Best Buy), I've had access to solid phone support and next-day on site repair, with no need to even bring the machine into a store. Given that Macs are also premium PCs, I would think that's the proper point of comparison.

My ex used to work in retail, and she used to tell horrendous stories about the people who would come in and be completely unreasonable, ugly and down right sociopathic. And of course, it's always the retail employee's fault.

Yup. At Apple, it was usually the "I just walked in, and there are 20 people ahead of me, all of whom made an appointment for service, but I want someone to take a look at my iPhone, which I just ran over with my car after dunking it in my coffee. I want them to look at it right now, I want them to repair it for free, and I want all my music and photos on it, despite the fact that I never took the time to back it up. AND MAKE YOUR EYE STOP TWITCHING AT ME!!!"

Actually, my personal favorite was the woman who brought in a cheap, no-name MP3 player that she bought from Wal-Mart, and could not, for the life of her, figure out why we couldn't fix it. She thought her logic of: you sell iPods, which are MP3 players, so you can fix MP3 players, was pretty sound.

What is Apple without customer service? That is why people buy Apple gear and essentially pay in advance for that service. Could you imagine having to contact google on a land line about an Android problem?

You would contact the manufacturer of the phone since they created the android fork on the said phone. Try again.